On the Personal Side of Things
Below are some of the common questions which I am asked often when speaking to clients.
What’s new for 2009 tax returns ?
There is a new $500 NS Fitness Credit for adults. Previously this was only available to children under 18.
The Home Renovation tax credit is a non-refundable tax credit for work performed or goods acquired for an eligible dwelling. Basically, any dwelling that you own and use personally may qualify. The housing unit must be the taxpayer’s principal residence or that of one or more of their family members at any time during the qualifying period for the credit. A principal residence is owned by the individual and ordinarily inhabited by the individual, a spouse or common-law partner or their child. Eligible expenditure for work performed or goods acquired must be made after January 27, 2009 and before February 1, 2010. Expenditures related to an agreement that was entered before January 28, 2009 will not be eligible.
The above items are only some of the changes for 2009 returns. Speak with us today about changes which may you.
I was employed in Alberta until October 2008. At that time, I moved back to Nova Scotia. Which provincial tax rate is applicable ?
Generally speaking, your province of residence at December 31 determines which province you must pay provincial tax to. If you had residences in more than one province on December 31, then you are considered a resident of the province which may reasonably be regarded as your principal place of residence. In some cases, this may be difficult to establish. Therefore, CRA will look at various criteria which will help determine where your “significant ties” are.
When is the deadline if I am an unincorporated business owner?
The deadline is April 30 for most individuals, but for unincorporated small business owners, it is June 15. However, if you do owe taxes, interest will accrue from May 1 onward.
Can I claim the interest on my student loan?
The student only, can claim the interest paid on prescribed student loans made under the Canada Student Loans Act, the Canada Student Financial Assistance Act or similar provincial or territorial government laws for post-secondary education. Unused claims may be carried forward for up to 5 years.
What happens if I contribute to a spousal RRSP and need to withdraw from it. In whose hands is it taxed?
Withdrawals from a spousal RRSP will be taxed in the contributor’s hands if the money is withdrawn within 3 years of the last contribution made.
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